If these issues are determined not to be issues, your PM needs to set expectations with the tenant.

But that's exactly what many people on this board say about Coastal California, which is what I take issue with.  

I have run into issues with getting financing because of the LLC or trust. 

I’ve looked up bloc or cloc and I understand them but the cross state stuff seems to be an issue and I’m curious if any of you experts have any advice.

Agreed - no issue with refinancing AFTER the 1031 exchange has occurred.The only problem one has is if there is cash out on the actual exchange itself. 

We have approached the sellers to hopefully have them file the use permit (Their realtor has been tough to communicate with - delayed responses and vague - and it appears that the sellers don't want to have to file any paperwork), so that it can be updated and we can close, but not sure if anyone else has run into this issue.

When I cash out Refi, i guess my CPA will issue the 1099?

Despite my repeated attempts to seek a resolution and clarification from NREIG, their representatives assured me that the issue was being handled, only to leave it unresolved and unaddressed.Now, to my utter disbelief and frustration, the bank has informed me that we are responsible for the lack of coverage during this entire period.

Check the numbers, try to assess if the neighbors are an issue, etc. 

I'm invested in several other syndicates with other firms without issue.